Coats cuts jobs after South American unit disposals - report
UK-based threads manufacturer Coats has cut a number of domestic jobs and replaced other roles as part of its new global strategy.
The move comes after the the company recently announced the sale of its Brazil and Argentina business, in line with its strategic initiatives that were announced in March “to accelerate profitable sales growth and transform the company”.
The job cuts were confirmed to GlobalData’s Just Style with a Coats spokesperson telling the publication: “One element of this [strategy] is to ensure that our regional operating activities are closer to our customers. As a result, some roles have been replaced and some have been made redundant”, although exact numbers were not revealed.
Coats said the decision to sell its Brazil and Argentina businesses “had not been made lightly, especially given the legacy that Coats had in these countries”.
It added that it’s now focusing on “strategically important” regions with its chief executive Rajiv Sharma also saying: “We believe that, for the Brazil and Argentina business to prosper in the future, it has to reinvent itself to meet the specific needs of the local markets.
“With this in mind, we felt the best decision to safeguard the future of the organisation was to sell the business to new owners who will be solely focused on the local markets.”
The company said it intends to use its strong balance sheet to invest in sustainability, innovation, growth capex and acquisitions.
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